Ethereum (ETH) Defends $250 As Price Reaches Oversold Conditions

Ethereum (ETH) has successfully defended its $250 support without giving in to market panic. As most coins fell significantly, Ethereum (ETH) held its ground at this strong demand zone. The price rebounded strongly off the $250 level and ha now formed three consecutive green candles on the ETH/USD daily chart above. The price has currently broken past the $300 mark and is now expected to rise further. It faces a near term resistance at the 50 EMA which has been a strong resistance since June.
The price has not managed to break past the 50 EMA since June even though it has attempted to test it a number of times. Ethereum (ETH) has reached a similar point as it did in late March, with regards to the wave trend. It is now poised for a break out in the near future as the price appears to have found a bottom for now. The EMA alignment for Ethereum (ETH) continues to be strongly bearish and there are no immediate signs of a recovery. MACD conditions for Ethereum (ETH) indicate that the price will consolidate over the next few days before continuing a rally upwards. Ethereum (ETH) is another large cap coin having undergone a correction of more than 85% since its all time high. The price may have suffered enough since the beginning of the year but it has just broken even for the last 12 months.
When Ethereum (ETH) came into existence, it was seen as the solution to everything that Bitcoin (BTC) could not do. That meant allowing ICOs to raise funds through the Ethereum blockchain and developers to build Dapps and smart contracts in addition to a plethora of other functions that Bitcoin (BTC) could not offer. However, the centralized nature of Ethereum (ETH) and dominance of Vitalik Buterin has done a lot of damage to the project in the recent past. This damage is mostly in areas of centralization, governance, immutability and transparency. All of these issues have pushed Ethereum (ETH) far away from its original mission. This is why Ethereum Classic (ETC) has been gaining so much popularity compared to Ethereum (ETH) recently. Ethereum Classic (ETC) is also in an uptrend against Ethereum (ETH) and might soon become a serious Ethereum contender.
Ethereum (ETH) like most coins has reached the extent of its correction against Bitcoin (BTC) according to the ETH/BTC weekly chart above. MACD diagram on the above chart shows the price has just completed its small wave down and is now likely to stabilize over the next few weeks. Ethereum (ETH) is also poised to break out soon according to the EACCI indicator on the above chart as it is likely to breakout against Bitcoin (BTC) before October.
Ethereum (ETH) is one of those coins that will definitely see a lot of money pooled into it before the beginning of the next bullish cycle. A lot of retail as well as institutional investors are still very interested in Ethereum (ETH) mainly because of the level of adoption and recognition it has achieved. However, the long term outlook of Ethereum (ETH) depends on the value it can add that its competitors cannot.